“Affordable Choices for a Brighter Future” greenenergy.dc

1. DC’s Sustainable Energy Utility “Affordable Choices for a Brighter Future” www.greenenergy.dc.gov Taresa Lawrence, Ph.D. Acting Deputy Director, Energy Administration

2. Clean and Affordable Energy Act (CAEA) • Sustainable Energy Utility (SEU) established by CAEA • October 1, 2008 • Emergency version of CAEA was enacted with effective date of October 1, 2008 • October 22, 2008 • CAEA became Law • CAEA directed DDOE to issue SEU RFP • CAEA required SEU Advisory Board to propose performance benchmarks and comment upon draft RFP

3. SEU Advisory Board Duties and responsibilities of the Board are: • Provide advice, comments, and recommendations to DDOE and District Council regarding the SEU contract • Recommend SEU’s performance benchmarks • Comment on SEU RFP • Meet quarterly with DDOE and SEU to monitor programs and Contractor performance • Report SEU’s performance to the District Council and public annually • Convene subcommittees and working groups

4. Composition of the SEU Advisory Board

5. SEU RFP Development • As required by CAEA, DDOE hired consultant with experience in the drafting of a RFP for the state-wide provision of end-user energy efficiency services • DDOE hired a consultant to assist in developing performance benchmarks • DDOE held an industry day on September 15, 2009 to solicit the advice and input of private entities that may bid on the SEU contract • DDOE developed the RFP with substantial input from SEU Advisory Board, mostly by consensus

6. Objectives of the SEU • Provide energy efficiency and renewable energy programs for all major market segments • Provide programs to traditionally difficult-to-serve market segments • Provide programs to market segments that face significant barriers to participation • Offer coordinated delivery of energy efficiency and renewable energy programs • Identify and leverage opportunities to bring additional funding to the SEU • Create green jobs for District residents

7. www.greenenergy.dc.gov “Affordable Choices for a Brighter Future” • Energy efficiency and renewable energy programs provided under brand name “Green Energy DC” • Portal to provide information about every energy efficiency and renewable energy program in the District, offered by: • DDOE • SEU • PACE • Electricity or natural gas companies • Federal Government • Non-Profit entities • Any contractor or subcontractor for any of the above

8. SEU Performance Benchmarks • Reduce per-capita energy consumption • Increase renewable energy generating capacity • Reduce growth of peak electricity demand • Improve energy efficiency of low-income housing • Reduce growth of energy demand of largest energy users • Increase number of green-collar jobs

9. SEU Contract Tasks • General administration • Budgeting • Financial management • Implementation Contract management • Dispute resolution • Information technology, data collection, and management • Preparation and submission of required reports • Program research and design • Program implementation and delivery • Qualification and certification of SEU’s and IC’s workforce, support workforce training

10. SEU Contract Tasks cont’d • Program marketing and consumer education • Identify and leverage additional funding for the SEU • Property Assessed Clean Energy Program • PJM Capacity Market • Federal and private grants

11. Terms of Contract • Contractor Structure • Single firm • Team of firms • Term of Contract • One year • Six one-year extension options (contingent upon annual appropriation of funds and District Council’s approval) • Contract Administration • Invoice Payment • Funding Sources • Sustainable Energy Trust Fund

12. SEU Budget • Year 1 - $7.5M • Year 2 - $15M • Year 3 - $17.5M • Year 4 (and Thereafter) - $20M • Leveraged funds (e.g., federal grants) will not change performance benchmarks and incentives

13. SEU Contract Oversight • DDOE will monitor SEU performance with advice comments, and recommendations from the SEU Advisory Board • SEU Advisory Board will meet quarterly with the Contractor to monitor the performance of the SEU and its programs • SEU Advisory Board will report on the progress of the SEU to the District Council annually • DDOE will commission an annual independent audit on SEU performance and expenditures of the Contractor and shall provide the results of this review to the Board and Council within 6 months of the conclusion of each year of the SEU contract

14. Evaluation, Measurement & Verification • DDOE will hold in reserve up to 8% of annual SETF funding for the SEU contract to pay for EM&V of the SEU, less in year one • Contractor will have a plan for monitoring and data collection activities for each program • In program design, the Contractor will identify appropriate and cost-effective measurement, monitoring, and verification activities for energy efficiency measures that are eligible to be bid into the RPM • Contractor will develop EM&V protocols, in consultation with DDOE, and develop and continually update a TRM • Contractor may be required to participate in the NEEP EM&V Forum

15. RFP Timeline • Questions Submitted: July 30, 2010 • Questions Answered: August 6, 2010 • Statement of Intent: August 10, 2010 • RFP Response Due: September 1, 2010 • Bidder Presentations: September 15-17, 2010 • Contract Negotiations: October 4-15, 2010 • Contract Execution: November 8, 2010